Later this year we are attending a show in Dublin, the Organiser has invoiced us with Irish Vat at 21%.

How should this be entered into Solar as the % only list upto 17.5% being the UK Vat rate.

Hi Tom,

If your supplier charges you Irish VAT for a service, you can simply enter a rate of 21.5% for the transaction in Solar Accounts (you don't have to choose from the suggested rates). The correct procedure is then to reclaim this VAT amount directly from the Irish authorities as described in VAT Notice 723:
http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&propertyType=document&id=HMCE_CL_000860

However, it appears that Solar Accounts does not handle this type of transaction correctly because it adds the purchase to your (UK) VAT return. I will look into the problem and give you more details tomorrow.

Regards,

Thanks Mark that would be great.

I have been looking ninto this for quite a while, and as it is an event (show) we are attending it is not covered by the normal procedures in regards to claiming the Vat back on Services.

What you have to do is claim it back under the 8th Directive, something that I had never herd about. http://www.the-mia.com/Changes-to-the-8th-Directive-EU-VAT-refund-claims

I will look forward to finding out how this can be dealt with in Solar.

Hi Tom,

Ok here's what you need to do:

Firstly, create a new asset account called 'Irish VAT to be Refunded'. When you record the purchase set the VAT Treatment to 'Out of Scope' (as this treatment only applies to UK VAT). On the first line enter the ex-VAT amount allocated to the appropriate expese account. On the second line, enter the VAT amount allocated to 'Irish VAT to be refunded'.

You will then need to submit a claim to recover the Irish VAT amount. From the link you supplied it looks like you can do this using the UK government website http://www.gateway.gov.uk/ but I'm not sure how. I recommend you check with the HMRC help line on 0845 010 9000.

When you receive the refund, record a General Transaction from the 'Irish VAT to be Refunded' account to the 'Cheque Account'.

I hope this makes sense - let me know if you need more information.

Cheers,